Resolution No. 629 Purchasing and Contracting PolicyRESOLUTION NO. 629
A RESOLUTION OF THE CITY OF YELM, WASHINGTON, ADOPTING A PURCHASING AND
CONTRACTING POLICY
WHEREAS, the City has conducted a thorough review of its current Purchasing and
Contracting procedures in an effort to revise and update its policies with respect to purchasing
matters; and
WHEREAS, on the basis of such review and input, the City has determined to adopt a
new Purchasing and Contracting Policy; and
NOW, THEREFORE, BE IT RESOLVED,
Section 1 Purchasing and Contracting Policy Adopted That certain document entitled City of
Yelm Purchasing and Contracting Policy in Appendix I and dated November 22, 2022 is hereby
adopted as the City's Official Purchasing and Contracting Policy for all City Employees.
Approved this 13th day of December, 2022
Joe into, Mayor
Attest:
Kathy Linnem r, City Clerk
WASHINGTON
Meeting Date:
CITY COUNCIL AGENDA ITEM SUMMARY
City of Yelm, Washington
AGENDA ITEM: Resolution 629 Adopting a Purchasing & Contracting Policy
PROPOSED MOTION:
Motion to adopt Resolution 629, Adopting a Purchasing and Contracting Policy
KEY FACTS AND INFORMATION SUMMARY:
This policy is intended to direct the purchase of goods and services at a reasonable cost, using
an open, fair, documented, and competitive process whenever reasonable and possible.
This policy takes into account the City's use of the MSRC Small Works Roster, which will be
adopted in a separate Resolution.
The proposed policy is in compliance with applicable state laws that govern the purchasing and
bidding of public works projects and other goods and services that the city may contract for.
More information can be found in the Washington State City Bidding book at www.mrsc.org.
ATTACHMENTS:
■ Purchasing Policy and Appendix A&B
Respectfully Submitted:
Stephanie Dice
Finance Director
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Table of Contents
1.o Introduction
1.1 Purpose of the Policy..................................................................Page 2
1.2 Conflicts of Interest.....................................................................Page 2
1.3 Unauthorized Purchases.............................................................Page 2
1.4 Personal Gifts to be Declined ......................................................Page 3
2.0 DEFINITIONS
2.1 Architectural and Engineering ....................................................Page
3
2.2 Formal Competitive Bid..............................................................Page
3
2.3 Informal Competitive Quotes .....................................................Page
3
2.4 Interlocal Agreements.................................................................Page
3
2.5 Internal Guidance Document ......................................................Page
4
2.6 MRSC Small Works and Consultant Roster..................................Page
4
2.7 Nonprofessional Services............................................................Page
4
2.8 Ordinary Maintenance................................................................Page
4
2.9 Prevailing Wages.........................................................................Page
4
2.10 Professional Services.................................................................Page
5
2.11 Public Work...............................................................................Page
5
2.12 Purchased Service.....................................................................Page
5
2.13 Emergency Purchase.................................................................Page
5
2.14 Lowest Responsible Bidder ........................................................Page
6
2.15 Supplemental Bidder Responsibility Criteria..............................Page
6
3.o RESPONSIBILITY
3.1 Finance Director.........................................................................Page 6
3.2 City Administrator........................................................................Page 7
3.3 All Department Directors............................................................Page 7
3.4 All Supervisors and Managers .........................................................Page 7
3.5 Employees....................................................................................Page 7
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4.0 GENERAL PROVISIONS
4.1 Council Notification.....................................................................Page
8
4.2 Exceptions to the Formal Bidding and Quotation Process ..........Page
8
4.3 Procurement Under Federal Grants ...........................................Page
9
4.4 Public Works................................................................................Page
9
4.5 Supplies, Materials and Equipment.............................................Page
10
4.6 Architectural And Engineering Services.......................................Page
10
4.7 Telecommunication and Data Processing....................................Page
10
4.8 Amendments And Change Orders ...............................................Page
11
4.9 Purchasing From Other Governments .........................................Page
11
1.0 INTRODUCTION
1.1 Purpose
This policy is intended to direct the purchase of goods and services at a reasonable cost, using
an open, fair, documented, and competitive process whenever reasonable and possible.
1.2 Conflicts of Interest
No City staff or elected official may undertake consulting, professional practice or other
assignments which would result in a conflict of interest. Any employee of the City who
recommends or approves a purchase and who has a financial interest in the vendor involved
with a purchase shall disclose his or her interest in the vendor prior to recommending or
approving the purchase.
1.3 Unauthorized Purchases
Purchases for personal use are not allowed. The person ordering the unauthorized and
unjustified purchase is personally liable for the costs of the purchase or contract and may be
subject to disciplinary action, up to and including termination. If the purchase was made
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without proper authorization but is in fact a justified purchase, then the Department Director
has the option to approve the purchase after the fact.
1.4 Personal Gifts to be Declined
Personal gifts or gratuities that might influence or give the appearance of influencing the
requisition or purchase of material(s) must be declined.
2.0 DEFINITIONS
2.1 Architectural and Engineering Services
Professional services rendered by any person, other than a city employee, to perform activities
within the scope of the professional practice of architecture (RCW 18.08), professional practice
of engineering and land surveying (RCW 18.43), and/or professional practice of landscape
architecture (RCW 18.96)
2.2 Formal Competitive Bid
The process of advertising and receiving sealed written bids from perspective vendors. The
selection of the vendor is primarily based on the lowest cost from the responsible bidder.
2.3 Informal Competitive Quotes
Price quotes from vendors that are obtained using a variety of mediums such as phone, fax, e-
mail, or writing. Results must be documented. The selection of the vendor is primarily based on
the lowest cost from the responsible bidder.
2.4 Interlocal Agreements
Are the exercise of governmental powers in a joint or cooperative undertaking with another
public agency.
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2.5 Internal Guidance Document
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Standalone resource documents Summary of Competitive Requirements by Project Type
(Appendix A) and Signature Approval Matrix (Appendix B) outline City established and RCW
defined thresholds and signature authority as indicated throughout this policy to ensure staff
follow associated City and RCW requirements in relation to this policy.
2.6 MRSC Small Works and Consultant Roster
A shared statewide small public works roster to award public works contracts, a consulting
services roster for architectural and engineering and other professional services and a vendor
roster for goods and services, all managed by the Municipal Research and Services Center of
Washington used by Washington State local public agencies. These roasters are maintained and
operated in full compliance with state laws and purchasing requirements.
2.7 Nonprofessional Services
Services that are purchased by the City for which the contractor receives specific instructions
and guidance from the City and does not meet the definition of professional services,
architectural and engineering services, or public works projects. Examples include machine
repair, debt collection services, temporary service agencies, credit card services, equipment
service agreements, auctioning services, delivery services, inspections, advertising, etc.
2.8 Ordinary Maintenance
Is less complex and routine work that is not contracted but is either regularly performed at
least once per year or work that is not regularly performed but is necessary to prevent eventual
repairs.
2.9 Prevailing Wage
The state Public Works Act requires government contractors to pay their employees prevailing
wages on public work and public building service maintenance contracts. The prevailing wage is
the hourly wage, including usual benefits and overtime, paid in the largest city in each county,
to the majority of workers in a particular trade or occupation, as published by the Washington
State Department of Labor and Industries semi-annually in February and August. RCW 39.12
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2.10 Professional Services
Services provided by consultants that provide highly specialized, generally one-time expertise
to solve a problem or render professional opinions, judgements or recommendations. The labor
and skill involved to perform these types of services are predominately mental or intellectual,
rather than physical or manual. Examples may include graphic design, advertising, analysis,
financial expertise, accounting, artists, attorneys, bond brokers, computer consultants,
planners, real estate services, etc. This term does not include architecture and engineering
services as defined in Paragraph 2.1.
2.11 Public Work
As defined by RCW 39.040.10, means a complete project, and includes all work, construction,
alteration, repair or improvement other than ordinary maintenance, executed at the cost of the
City or which is by law a lien or charge on any City property. Public work projects include the
related materials, supplies, and equipment to complete the project. For purposes of this policy,
the term "public work" may include contracts for maintenance of City facilities or real property
that comply with chapter RCW 39.12.
2.12 Purchased Service
Purchased services are those provided by vendors for routine, necessary and continuing
functions of a local agency, mostly relating to physical activities that follow established,
contribute to the day-to-day business operations, completion of an assigned and/or specific
tasks and decision-making is routine or perfunctory in nature.
2.13 Emergency Purchase
For purposes of this section "emergency" means unforeseen circumstances beyond the control
of the City that either: (a) Present a real, immediate threat to the proper performance of
essential functions; or (b) will likely result in material loss or damage to property, bodily injury,
or loss of life if immediate action is not taken.
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2.14 Lowest Responsible Bidder
RCW 39.04.350 establishes bidder responsibility criteria as follows;
1) be a registered contractor at the time of bid submittal (RCW 18.27.020)
2) have a current Unified Business Identifier number
3) have industrial insurance coverage
4) have an employment security department number
5) have a state excise tax registration number
6) have never been disqualified from bidding under RCW 39.06.010 or 39.12.05(3)
7) have not had any apprenticeship violations, if applicable, and
8) certify through a sworn statement that they are not a willful violator of labor laws in
reference to RCW 49.48.082.
9) have a Yelm Business License (or ability to obtain one prior to contract award)
2.15 Supplemental Bidder Responsibility Criteria
In accordance with RCW 39.04.350 the City may use additional supplemental bidder
responsibility criteria as follows; 1) the ability, capacity, and skill of the bidder to perform the
contract or provide the service required, 2) the character, integrity, reputation, judgement,
experience, and efficiency of the bidder, 3) whether the bidder can perform the contract within
the time specified, 4) the quality of performance of previous contracts or services, 5) the
previous and existing compliance by the bidder with laws relating to the contract or services,
and 6) such other information as may be secured having a bearing on the decision to award the
contract.
3.0 RESPONSIBILITY
3.1 Finance Director
® Develops purchasing policy and procedures
® Establish respective thresholds, outlined in internal guidance document
• Monitors compliance with this policy
• Monitors compliance with budget authority
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Approves exceptions to policy
May require additional justification or clarification for requests or specifications
Contracts with Municipal Research and Services Center to adopt for City use statewide
databases developed by MRSC for small works roster, consultant roster and vendor lists.
3.2 City Administrator
* Approves respective thresholds, established by the Finance Director, as outlined in
internal guidance document
* Must sign for authorization of payment for invoices greater than allowed through
thresholds as outlined in an internal guidance document, available for all City staff to
reference.
3.3 All Department Directors
* Ensure compliance with policy by staff
* Specifications and the selection of products and vendors
* Inspecting and accepting or rejecting deliveries of supplies, materials or equipment
* Ensuring that Prevailing Wages are paid
* Authorized to approve invoices for payment of purchases as outlined in the internal
guidance document, may assign a designee as needed in their absence
3.4 All Supervisors and Managers
* Authorized to approve invoices for payment in the amount as outlined in the internal
guidance document
• Follow this policy and related procedures
• Retain documentation
* Never split purchases of same or like items to stay below bid or quote limit
3.5 Employees
City employees purchasing on behalf of the City
* Follow this policy and related procedures
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• Retain documentation
• Never split purchases of same or like items to stay below bid or quote limit
4.0 GENERAL PROVISIONS
4.1 Council Notification
• The City Council shall be informed of all unbudgeted non -emergency projects or
equipment valued greater than $15,000 and updated as appropriate by the appropriate
Department Director and City Administrator. Council shall be provided a preliminary
estimated cost breakdown of each project, which includes all parts like and unlike, prior
to awarding of work.
■ Projects or equipment included in the adopted City budget do not need additional
council notification.
• For unbudgeted emergency projects valued greater than $15,000, the chair of the
respective council committee shall be informed as soon as possible, and the entire
council shall be informed at the next regular council meeting.
4.2 Exceptions to Formal Bidding and Quotation Process
City allows exceptions to the process, subject to approval of the Public Services Director
(authorized to independently declare an emergency situation exists) and Finance Director in
compliance with applicable RCW's:
• Procurement of a patent brand product to ensure compatibility
• Formal bids have been solicited and no responses received
• The State Department of Purchasing or other governmental entity has established a bid
(piggybacking).
• Emergency contracts as authorized through RCW 39.04.280(2)(b) and documented as
follows:
o If a contract is awarded without competitive bidding due to an emergency, a
written finding of the existence of an emergency must be made by the Public
Services Director and duly entered of record no later than two weeks following
the award of the contract.
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A sole source of supply exists, as so long as the Department complies with RCW
39.04.280(2)(a) as follows:
o Complete a sole source justification document immediately after the award of
any sole source contract, to identify the contract and the factual basis for the
exception to be recorded and open to public inspection.
4.3 Procurement under Federal Grant Awards
When procuring property and services under a Federal Award, the City will follow 2 CFR
200.318 General Procurement Standards through 200.326 Contract provisions, or City
purchasing procedures, whichever is more restrictive as identified in the internal guidance
document.
4.4 Public Works
• Contracts less than RCW defined amounts, identified in Appendix A - Summary of
Competitive Requirements by Project Type do not require multiple quotes provided it is
determined that the quote received is fair and reasonable.
• Minimum of three informal quotes will be obtained when required in compliance with
state law and as outlined in the internal guidance document through use of MRSC small
works roster authorized via Resolution of the City Council.
• Formal bid process for work performed in compliance with RCW requirements as
outlined in the internal guidance document
• The City will require all public works contracts that meet or exceed the small works
roster thresholds, as outlined in the internal guidance document, will have both bid and
performance bonds (can substitute retainage opposed to performance bond).
• For projects obtaining quotes or formal bids the City will ensure compliance with all
applicable State laws when:
o Awarding the contract, as in it must be to the lowest responsible bidder
o Requiring or waiving payment and performance bonds
o Requiring or waiving bid bonds and retainage
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4.5 Supplies, Materials and Equipment
All purchases will follow required RCW thresholds as outlined in an internal guidance document
maintained and updated as appropriate by the Finance Director and Approved by City
Administrator, available for all City staff.
4.6 Architectural and Engineering Services
Procurement of architects, engineers, surveyors and landscape architects will be done through
a qualification -based selection process in compliance with applicable RCW's through use of the
MRSC Roster utilizing thresholds outlined in the internal guidance documents.
4.7 Telecommunications and Data Processing Equipment and Software
The City will use a Competitive Negotiation Process for all telecommunications and data
processing equipment and software purchases which requires the following at a minimum:
■ A request for proposal shall be prepared and submitted to an adequate number of
qualified sources and notice for the proposal must be published in a newspaper of
general circulation in the municipality at least thirteen days before the last date upon
which proposals will be received.
® The municipality shall provide reasonable procedures for technical evaluation of the
proposals received, identification of qualified sources, and selection for awarding the
contract.
• The award shall be made to the qualified bidder whose proposal is most advantageous
to the municipality with price and other factors considered. The municipality may reject
all proposals for good cause and request new proposals.
All telecommunication and data processing equipment and software purchases must be
approved by the Information Technology Manager and comply with the Acceptable Use
Policy.
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4.8 Amendments and Change Orders
® Amendments are changes to service contracts, rather than new contracts, and can be
processed as such if the changes are within the general scope of the original contract.
• Change Orders are a formal document that alters some condition of the contract
documents. The change may alter the contract price, schedule of payments, completion
date, or the plans and specifications.
■ Accumulated change orders to the lesser of 5% or $35,000 of the original contract
award amount may be approved by the Department Director or designee, as long as
there is budget capacity.
• Accumulated change orders greater than 5% or $35,000 and up to 10% of the original
contract award amount may be approved by the City Administrator or designee, as long
as there is budget capacity.
• Accumulated change orders greater than 10% of the original contract award amount
must be approved by City Council
4.9 Purchasing From Other Governments and Piggybacking
The City may enter into interlocal cooperative purchasing agreements with other public
agencies as authorized by RCW 39.34.030, and/or purchase off of State of WA contracts
established by the WA State Department of Enterprise Services. This allows the City to
"piggyback" off of the other entities competitive process and thus eliminates the need to
perform our own. Due care should be exercised to ensure the contracting entity has complied
with all applicable bid laws.
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'i.'
u a of oi iv jr rF,�'i,e sBy R�- 'llect Type
Project Type
Contract Value
Competitive Process Requirement
In -House
Public Works Projects
< $75,500
Single Trade or Craft
May construct with city forces without calling for bids or quotes.
Multiple Trade or Craft
< $116,155
< $75,500
Small Contracted Public Works
May construct by contract without calling for bids or obtaining quotes via the
Projects
Single Trade or Craft
small works roster.
< $116,155
Retainage and performance/payment bond are required.
Multiple Trade or Craft
Solicit electronic or written quotations from a minimum of 3 contractors from
Limited
Public Works Projects
<$50,000
the small works roster.
Retainage and performance/payment bond can be waived.
Quotations shall be solicited from at least 5 contractors on the appropriate
small
Small Public Warks Roster Projects
$75,500/$116,155
works roster in a manner that will equitably distribute the opportunity among
$350,000
the
contractors.
Retainage and performance/payment bond are required.
Competitively Bid Public Works
>$350,000
Public notice and call for sealed bids. Formal award.
PrP_ oje
Retainage and performance/payment bond are required.
$7,500
Three quotes desirable -
Purchases of supplies, material and
equipment unrelated to public
works project
(A competitive negotiation process
$7,500 - $15,000
Minimum of 3 Quotes from approved vendor list.
may be used as an alternative to
bidding for computer and
telecommunications equipment,
software and related services.)
>$15,000
Public Notice and Call for Sealed Bids required.
Review qualifications of firms on the consulting services roster and select
Purchase of A&E,_surveying or
< 20,000
landscape Architecture Services
most
qualified.
Selection based on review of
qualifications first, then negotiations
Review qualifications of firms on the consulting services roster and select 3-6
to arrive at a price that is deemed
$20 K to $50K
most qualified firms and invite proposals.
fair and reasonable to the City.
Select most qualified firm using proposals.
>$50K
Publish RFQ, select 3-6 firms to submit proposals.
Review proposals, hold interviews, select most qualified firm.
3 quote process for contracts $10K -20K, and RFP/RFQ process for contracts
Purchases of All Other Services
All contracts
$20K -
$50K, and a formal advertised RFQ/RFP process for contracts >$50K. <$10K
no competitive process is required.
APPENDIX B —
Signature Approval Matrix
Public Works
Amendments that do not change
Department Director or designee, as long as
Contract Amendments the contract value
$75,000 or less —
City Administrator or Designee, as
Public Works — Limited Public Work Process or Small
Single Craft
long as there is budget capacity
Contracted PW projects
there is budget capacity
$35,000,
$116,155 or less-
City Administrator or Designee,
More than 1 Craft
as long as there is budget
contract award or an accumulated
City Administrator or Designee, as long as there
capacity
total of $35,000, and up to 10% of
$116,155 or less-
City Administrator or Designee, as
the original contract award amount
long as there is budget capacity
More than 1 Craft
Public Works — Small Works Roster
Up to $350,000 —
City Administrator or Designee, as
M u l t i p l e
Ionr, as there is budget capacity
Crafts
Public Works — Formal Bid Process
Over $350,000
City Council Approval
Purchases
City Administrator or Designee,
Large Purchases for Materials, Supplies & Equipment
Up to $75,000
as long as there is budget
including installation, Purchase of Professional Services,
capacity
Purchase of Architectural and Engineering, and General
$75,000 and above
Services
City Council Approval
Amendments & Change Orders
Amendments that do not change
Department Director or designee, as long as
Contract Amendments the contract value
there is budget capacity
Lesser of 5% of the original contract
Department Director or designee, as long as
award or an accumulated total of
there is budget capacity
$35,000,
Greater than 5% of the original
contract award or an accumulated
City Administrator or Designee, as long as there
Contract Change Orders
total of $35,000, and up to 10% of
is budget capacity.
the original contract award amount
Accumulated change orders greater
City Council Approval
than 10% of the original contract